Wednesday, 20 October 2021 01:32 GMT

Why AMD Bottomed at $100


(MENAFN- Baystreet.ca) Why AMD Bottomed at $100









After posting a strong quarterly report on July 27, AMD (NASDAQ:AMD) broke out to the upside on strong volume. After trying for years to break above the $90-$99 level, the stock closed at $106 last week. Unless the Nasdaq corrects, $100 is a bottom for AMD.
AMD's CEO Lisa Su is bullish on the chip sector's bullish outlook. It will work through the shortage by taking steps to increase shipments. AMD is seeing an incremental improvement in the supply chain. It already worked through the supply issues in the second quarter to exceed expectations and raise its guidance for 2021.
Demand remains strong. Customers have more choice with AMD's product lineup. Corporate customers are buying EPYC chips for their data centers. And the growth in e-commerce continues to drive demand for more computing power.
AMD's 7nm chip manufacturing gives it a wide lead over Intel (NASDAQ:INTC). Intel said its 7nm progress is on schedule, after years of delays. It has Rome and Milan chips but AMD is already ahead of schedule with Zen 3. At around seven times enterprise value to sales, AMD stock is in the undervalued zone. Intel continues to lose market share in the data center space.
Aggressive investors should continue accumulating AMD shares.









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